Latvia’s manufacturing output grows 6–6.5% in 2025, driven by defense orders

⚙️ Latvia’s manufacturing output grows 6–6.5% in 2025, driven by defense orders

Latvia’s Ministry of Finance projects a 6–6.5% rise in manufacturing output this year, as strong demand in the defense sector boosts industrial growth. In September alone, output grew by 8.5% year-on-year, the highest since mid-2022, according to the Central Statistical Bureau.

Growth was strongest in wood processing (+9.8%), food production (+10.9%) and metal products (+13.3%). Output of electronics and vehicles—partly linked to defense production—also increased sharply, while mining dropped by 28%.

Context:

The ministry noted that military production, supported by defense spending at 3.8% of GDP, is becoming a key driver of manufacturing. Latvia’s economic sentiment index reached its highest level since February 2022, reflecting stronger confidence in construction and consumer sectors.

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